Report of Second Visit to CANHE
September 25 through October 2, 1999
Jack Barden
November 1, 1999

During the period September 25 through October 2, 1999, I visited Alaska for the second time in the series funded by the Kellogg Foundation for assistance to CANHE and to the individual Tribal College sites. On September 27 and 28, 1999, I met with the Interinstitutional Planning Committee and with CANHE as a whole. Following that meeting I visited the Bristol Bay site in Dillingham. From there I went to Fairbanks and met with the Interior Athabascan Tribal College Board of Directors.

This visit contributed to the depth of my understanding of the particular issues involved in starting Tribal Colleges in Alaska as well as the breadth of the situations involved.  I have reached these conclusions. Under each of the conclusions is some further discussion of that area.    

I have a serious concern about the numbers of people who are in potential student pools and the distances that exist between them. This has a great impact on the financial feasibility of colleges and may direct planning toward more cooperative offerings.

As is typical with Tribal Colleges, our populations are relatively small. The populations in Alaska experience the further problem of distance. The combination of relatively small numbers with considerable distances separating them certainly do not preclude starting Tribal Colleges. However, in order for institutions of this nature to be sustainable, we need to pay close attention to cost factors.

I am working on an Excel spreadsheet that will take into account as many of the anticipated costs and revenues as is possible. The purpose of the spreadsheet is serve as a model in which various scenarios can be entered. The spreadsheet will certainly not  be an exact financial model, but it should help us in our thinking about how to form the Colleges.

In order to use the spreadsheet model, we will have to make a number of estimates. On the expense side, we will need to determine roughly what it will cost us to offer a course. That includes faculty time, telecommunication costs, administrative costs associated with each hour of instruction, supplies, travel if applicable, equipment, cost for development of distance courses if applicable, and all the other costs that have a bearing on what it will eventually cost us to deliver courses. We will also have to break that down based on who is currently paying for it, e.g., UA system, Tribal Program, etc or whether it is being done now. The reason for all  this effort is to figure out as nearly as possible what it will cost us to deliver one credit hour. We will also have to look at different delivery methods to find out, for instance, if the cost of delivering a credit hour over a distance medium is the same as, greater than, or less than the cost of sending an instructor out to teach it. This will necessitate looking at current enrollments, as well, so that we can develop a cost per student per credit hour estimate.

The revenue side of the coin also needs to be attended to. We need to know, for instance, how many students can reasonably be expected to become part of the Colleges and what we can charge per credit hour. We also need to determine whether or not there is any possibility of tribal financial support and what grants might either currently exist or might be applied for. However, our main concern with the model is to make these calculations without grants in mind to try to determine basic survivability.

I am also building the model so that Tribal College Assistance funds can be factored in or not depending on the outcome of those discussions with AIHEC and governmental officials.

Obviously, the goal of the model is to determine if our projected revenues match or exceed our expenses. The advantage of using an Excel model like this is that we can change parameters, e.g., the salary paid to a FTE faculty member or the tuition we charge for one credit hour to see what differences those changes make. The spreadsheet will automatically recalculate everything when changes in one or more parameters are made so that we can try a variety of Awhat if@ scenarios.

In order to make use of the model, each site will have to provide certain information. The information I need is on the attached sheet. It does not require an immense amount of research and much of it is estimated. It will provide the starting point (no doubt there will be many changes) for trying to figure out how we stand in terms of fiscal potential.

We also have to remember that this is a work in progress. I am developing the model based on what I have said above. There are probably a lot of other costs and revenue sources that I have not anticipated. So we can start with what I have and try to factor in others that CANHE comes up with.

It would be very useful if each of the sites could put their estimates on the attached A Parameters  sheet so that I can get started on the calculations. During my next visit, I will use these sheets as part of my discussion with the sites I visit. I also know that some of this data is contained in some form in your regional plans. However, I have to get the data in comparable form so that is why I am asking for this information.

We still seem to be thinking in terms of discrete programs, e.g., vocational programs, short courses, etc., rather than about an umbrella-type college that subsumes all these other offerings.

The material that I sent up after my first visit contained a lot of points that have to do with  how colleges operate. One of the main thrusts of that information was that there are certain ways of thinking that make for an accreditable college. Thinking about single programs does not work if we are interested in becoming colleges.

We will have to make some decisions about what to do about AIHEC and about the Tribal College Funding Act.

I mentioned during the last visit that I would like to bring a Tribal College president with me  during one of my visits. I have since discussed this with David Gipp, President of United Tribes Technical College. He said that he would be glad to come up the next time that I visit when CANHE is going to be together and having a meeting. There are a number of reasons why Dave would be a good person to bring. First, he has been involved with AIHEC since it startes. He was the first Executive Director, beginning his service in 1973 and was involved when all the Montana colleges came into the organization. So he has experience working with potential members. Second, although he was Executive Director in 1978 when the Tribal College Act was passed, his institution does not receive funds under the Act. He, therefore, does not have a vested interest in keeping enrollments low and payments higher. Finally, United Tribes is a college that is intertribal. His campus has students from up to 40 tribes on campus at any given time. So he has experience in working with different cultures.

I am convinced that the effort could move ahead much faster and more efficiently if there were a substantial pot of money to draw from.

One of the problems that I see is that the Directors of the regional campuses in most cases  cannot devote full-time attention to development of the Tribal College. Title III of the Higher Education Act has an Alaska Native set-aside. It should be feasible for CANHE, working with one of the other Colleges in Alaska, to get some funds to devote solely to advancing the cause of Tribal Higher Education.

Using a model that many TCCCs in the Lower 48 used when they started, it should be possible to find a state or private college that is eligible (Ilisagvik would work fine, as well but it already has a grant and may not be eligible to apply for another one while that one is in effect) to apply for a grant to Asponsor@ these developments. We would need to check all this out.

The main point is that there is a two-stage application process which will begin fairly soon, I think. The institution that will apply has to be declared eligible. That requires an application to be filed. Then, once that occurs, planning for the grant has to be done and a proposal written. Title III proposals are particularly hard to write so it takes some time.

Such an application would be an excellent way for CANHE and the regional campuses to get some funds for development and for trying out a number of ways to deliver education to people in remote sites.

At any rate, if this is a good idea, we will need to start some fairly concrete work on this quite soon.

There are no doubt a number of other things that we should be working on. But those are the things that I was left with from the September/October visit.

Parameters for Use with the CANHE Fiscal Model

Most of the information asked for below has to be estimated. If your college has a history of relatively full-scale operation, use past history to make the estimates. We will be using these figures in calculations and they can easily be changed. What I am looking for at this point is simply your initial thoughts. We will refine them as we go along. I am also sure that as the model develops, there will be more things that will be needed. We can handle that through e-mail or on the phone. This is for starters.

How many students can reasonably be expected to enroll in your College if you were in full operation? This should be a head count, i.e., it does not make any difference whether these students are full time or not. ____________

On average, how many credit hours can each of these students be expected to take? This is an estimate. _____________

What salary do you currently pay your teachers? ________ per _____. (For instance, $$500 per credit hour or $40,000 per 12 credit hours). The unit is important and I will probably have to call you or talk with you during a visit to get this refined to a point that it will be useful.

Are you on a Quarter or Semester system? _______________

If you pay travel to distant sites, what is an average reasonable amount that you pay to a teacher for one 3 credit hour course? ______________ (If a 3 credit hour course does not work for you, please indicate how you handle travel payment below: ____________________________________________________________.
I may need to follow up on this item with a telephone call.

If you make use of distance methods, what is your primary distance deliver method? ____________________________________________________________.

Using that distance method, what is the average cost of delivery for a 3 credit hour course? __________ (Again, if 3 credit hours does not work for you, indicate below how you deal with distance costs. ________________________________________________
_____________________________________________________________
I may need to follow up on this item with a telephone call.

What is your per credit hour tuition? __________

If you charge any other fees, e.g., a distance learning fee, what is that? (There may be several). ______________________________________________________________________________________________________________________.
I may need to follow up on this item with a telephone call.

Please list below your sources of support, whether this support is actually present now or if it is a possibility, and how much support they give you or can be reasonably expected to give. This does not necessarily have to be an exact amount or a dead certainty that you will be funded but it should be as close as you can make it. In this table, include Tribal funds, grants from funding agencies, and any other income sources outside of students.

Source
Current or PossibleAmount

Use this space to write down any other things that I have overlooked in trying to come up with a basic fiscal model. Use the reverse side of this sheet if there is not enough room . _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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